The Research On Performance Evaluation Of Tonze’s Acquisition Of Xintai Materials

Since the reform and opening up,as the economic development has been relying on the traditional growth mode of high pollution and high energy consumption,China has gradually emerged problems such as overcapacity,aging population,environmental pollution,lack of resources and weak market demand.From the current economic and social background,the supportive measures formulated by the Chinese government are aimed at promoting the upgrading and optimization of traditional industries.And those who are in the bottleneck of development also began to actively seek new development direction,through mergers and other ways to achieve their own optimization and upgrading.In 2015,China’s A-share companies cross-industry mergers and rising so accurately judge whether M&A can bring positive influence to mergers and acquisitions subject,namely the merger will achieve the transformation of the enterprise goal,whether can produce synergies after the merger,and so on is very important,and establish a set of suitable for mergers and acquisitions performance evaluation system is necessary.On the basis of the research on the performance evaluation of enterprise merger and acquisition by domestic and foreign academic circles,this paper analyzes the motivation of Tonze’s cross-industry merger and acquisition of Xintai Materials.Then,after comparing the existing M&A performance evaluation methods,a set of scientific and reasonable M&A performance evaluation system suitable for Tonze is constructed based on the viewpoints of relevant scholars.Research shows that Tonze completed the acquisition of Xintai Materials at the end of 2016 to achieve the strategic goal of diversifying operations and seeking new profit growth points,and thus began to enter new industry fields.According to the characteristics of Tonze Stock,indexes are selected,weights are assigned by entropy method,and indexes are analyzed and scored objectively and in detail by improved balanced scorecard.On the one hand,the indexes are analyzed to study the development and changes of Tonze stock in the ten years before and after the merger.On the other hand,after summing up,the comprehensive score of Tonze’s M&A performance can be obtained.At the same time,it can also observe the changes of comprehensive evaluation scores of enterprises in each year.The study concludes that Tonze has formed certain synergies after the acquisition under the improved balanced scorecard system,and its overall market ranking has been improved to a small extent.Its long-term solvency and profitability emerged in the fifth year after the merger,but the positive effect of the merger on its operation capacity and growth capacity was not obvious,and the effect of Tonze’s acquisition of Xintai Materials was mediocre.According to the annual M&A performance score of Tonze,the score of 2021 is the highest,which indicates that the positive effect of M&A on Tonze will gradually emerge in the long run.However,the high goodwill of 2.3 billion yuan generated by Tonze’s acquisition of Xintai Materials was deducted due to the poor profitability of the acquired party,which seriously affected the profits of the enterprise.In view of such problems,enterprises should carefully choose the target of M&A before M&A,and make reasonable performance commitment programs,and do a good job of integration management in the middle and late stage of M&A,which is conducive to the development of enterprises.